Gold, silver add to Monday’s price gains

(Kitco News, Tues.  Feb. 1st, 2022) – Gold and silver futures prices higher again in early U.S. trading Tuesday, on more short covering and bargain hunting following recent gains. There is also some safe-haven demand coming into the gold and silver markets, amid geopolitical and Federal Reserve uncertainty. April gold futures were last up $11.60 at $1,808.20 and March Comex silver was last up $0.642 at $23.035 an ounce.

Reports said $5 billion of new funds piled into the gold market in late January. Safe-haven demand and inflation-related hedge moves are supporting the yellow metal. Also, the shaky crypto currency markets are likely benefiting the gold and silver markets.

Global stock markets were mostly higher overnight. U.S. stock indexes are pointed toward weaker openings when the New York day session begins. China’s markets are closed all week for the Lunar New Year holiday. There may be a bit less risk aversion in the marketplace early this week, following the big gains in U.S. stock indexes on Monday. The Russia-Ukraine border situation remains tense, but there is some speculation the matter won’t devolve into war. Still of concern to traders and investors is the timing of Federal Reserve monetary policy. Fed watchers are debating whether upcoming U.S. interest rate increases may be too rapid and an over-reaction to inflation concerns.

Gold is ‘prime candidate’ to rally as stocks reverse in 2022 – Bloomberg Intelligence

In overnight news, Australia’s central bank said it is exiting its quantitative easing of its monetary policy, but added that does not imply upcoming interest rate increases.

The key outside markets today see crude oil prices near steady and trading around $88.00 a barrel. Traders will closely monitor an OPEC-plus meeting that begins Wednesday. The cartel is expected to raise its collective oil production level. The U.S. dollar index is lower again today. The U.S. Treasury 10-year note yield is presently fetching 1.76%.

U.S. economic data due for release Tuesday includes the weekly chain store and Johnson Redbook retail sales reports, the U.S. manufacturing PMI, the ISM report on business manufacturing, construction spending, the global manufacturing PMI, and domestic auto industry sales.

Technically, the April gold futures bulls and bears are on a level overall near-term technical playing field. Bulls’ next upside price objective is to produce a close in February futures above solid resistance at $1,825.00. Bears’ next near-term downside price objective is pushing futures prices below solid technical support at the December low of $1,755.40. First resistance is seen at $1,810.00 and then at $1,820.00. First support is seen at the overnight low of $1,796.20 and then at this week’s low of $1,785.80.

March silver futures bears have the firm overall near-term technical advantage. Silver bulls’ next upside price objective is closing prices above solid technical resistance at $23.50 an ounce. The next downside price objective for the bears is closing prices below solid support at the December low of $21.41. First resistance is seen at $23.25 and then at $23.48. Next support is seen at the overnight low of $22.405 and then at last week’s low of $22.15

Posted by :

Jack Dempsey, President

401 Gold Consultants LLC

jdemp2003@gmail.com